System Theory focuses on the study of organisation as a

Correct option is B

System Theory, often associated with scholars like Ludwig von Bertalanffy, emphasizes viewing an organization as a cooperative or collaborative system. This theory studies an organization as a set of interrelated and interdependent parts that work together to achieve a common purpose. Unlike traditional management theories that focus narrowly on individual elements within an organization, System Theory encourages a holistic view, focusing on how the various parts of an organization interact and contribute to the organization’s success as a whole.
In the context of System Theory, an organization is seen as a collaborative unit where each component (e.g., departments, teams, individuals) plays a specific role but is interdependent on other components. This interaction and coordination among parts are essential to maintain equilibrium and adapt to changes within and outside the organizational environment.
Information Booster:
1. System Theory originated in biology and later influenced organizational studies.
2. It emphasizes the synergy created by cooperative actions within an organization.
3. System Theory supports open systems, meaning organizations are influenced by and influence their environment.
4. This theory assists managers in viewing their organizations as adaptive entities that must constantly evolve.
5. The concept of homeostasis is central in System Theory, where organizations seek stability despite external changes.
6. System Theory has led to the development of other frameworks, like the Contingency Theory in management studies.